Banker Is Fined $8.59 Million for Illegal Donations

James Riady, an Indonesian friend of former President Bill Clinton, pleaded guilty to a felony charge Monday and was fined a record $8.59 million for bankrolling illegal foreign campaign contributions to an assortment of American politicians.

“Mistakes have been made which I regret,” Riady told Los Angeles federal court Judge Consuelo B. Marshall before being sentenced to two years’ probation.

“I did not have to come back here,” said Riady, “but I wanted to own up to what happened and put it behind me.”

Riady, scion of one of the wealthiest families in Asia, returned voluntarily to the United States to plead guilty to violating federal campaign laws after negotiating a deal with federal prosecutors.

The United States has no extradition treaty with Indonesia.

Assistant U.S. Atty. Dan O’Brien said Riady was responsible for more than $1 million in illegal campaign contributions that were donated by employees of his now defunct LippoBank California from 1988 through 1994.

While most of the money went to help Democratic campaigns, including Clinton’s race for president, Riady operatives funneled donations to a number of Republicans, including Sen. Mitch McConnell of Kentucky and former Sen. Alphonse D’Amato of New York.

Riady and former LippoBank executive John Huang also plowed money into local and statewide California campaigns, including those of Gray Davis, Dianne Feinstein, Mike Woo, Kathleen Brown, March Fong Eu and Mel Levine.

Under questioning by Marshall on Monday, Riady said he knew it was illegal to reimburse his employees for their political donations. But he suggested that it was Huang who ran the show.

Huang pleaded guilty to a felony conspiracy charge in 1999 and was sentenced to one year probation and fined $10,000.

Riady said he and Huang hoped to use Lippo’s largess to persuade U.S. officials to grant most favored nation trade status to China, improve trade with Indonesia and repeal the Glass-Steagall Act, which limited business opportunities for LippoBank.

Riady reached his plea agreement with prosecutors after a year of contentious negotiations. O’Brien said in court that the 44-year-old Riady “refused to surrender himself if it meant going to prison. That’s why the government insisted on a very stiff fine.”

Unlike Huang, who has cooperated fully with federal investigators, O’Brien said he had some reservations about Riady’s candor with the government to date.

In his plea agreement, Riady promised to cooperate fully with the government. He also must perform 400 hours of community service and will be prevented from reentering the United States unless his presence is required by the government.

Riady also entered a guilty plea on behalf of LippoBank California to 86 misdemeanor counts of violating federal election law. The bank was acquired last year by First Bank’s America Inc., which was not involved in any illegal acts.